This paper analyses the descriptive power of the different extension of the Taylor rules. It also investigates whether monetary policy can indeed be described by a linear Taylor rule or, site instead, prostate by a nonlinear rule. In particular, order we extend the linear Taylor rule to a regime-Switching framework, where the transition from one regime to another occurs in a smooth way, using a logistic Smooth transition Regression (LSTR) approach. The purpose of this paper is to evaluate the behavior of monetary authorities in emerging countries and in particular South Africa in response to changes in macroeconomic variables over time based on LSTR model. In this sense, we empirically analyse Taylor-type equations for short-term interest rates in South Africa using quarterly data covering the period 1995Q3-2011Q4. Our results show that the nonlinear approach leads to reduce the measurement errors by 150 basis points in 1998 and 40 basis points in 2009. Moreover, the South Africa’s monetary policy exhibits nonlinear pattern that better capture special events and unexpected contingencies and may contain relevant information rendering it applicable only to unusual conditions i.e recession. Additionally, the presence of asymmetries in the reaction function of the South Africa’s Reserve bank (SARB)

Monetary authorities around the world have responded to the global financial crisis bylowering interest rates to zero and a lower limit by engaging in a series of unconventionalmonetary policies. Tunisia is not excluded as it is also affected by a relative but perceptibledeterioration in economic conditions, stomach especially aggravated by the phase of the revolution of2011. This brings the Tunisian economy to move into a situation of liquidity trap andtherefore requires the Tunisian Central Bank to lead to a new generation of unconventionalmeasures. We conducted a SVAR model estimates regarding (i) innovations to credit supplyby banks independently of an action for monetary policy, (ii) shocks to credit supply due tochange in policy rates and (iii) credit supply shocks caused by unconventional measures of monetary policy that are orthogonal to the policy rate. The results show that the Tunisian Central Bank can stimulate the economy beyond the policy rate by increasing the size of its balance sheet or the monetary base, which are considered quantitative easing measures.

The objective of this paper is to detect the interaction between liberalization and banking crisis and demonstrates various aspects of financial liberalization since its execution until the emergence of the financial and banking crises. Thus, pills in a first section we will deal with theoretical considerations of financial liberalization. Its implications for financial development and economic growth will be described in the second section. The relationship between financial liberalization and crisis will be the third section. Finally, online the last section is an empirical validation of the effects of financial liberalization, and a panel of emerging countries over the same period from 1973 to 2011.